Credit card issuers may be able to target their marketing better through a new Equifax prospect-scoring model that identifies the consumers most likely to open an account.

The True In-Market Propensity, or TIP, Scores initiative, announced July 17, uses credit-file information and predictive analytics to help issuers tailor their prescreening process for preapproved offers.

The TIP Score is not used to evaluate risk. Instead, the score helps issuers identify which consumers have the highest propensity to respond to card offers and open an account.

"We tried to piece together the attributes to whether they would open an account or whether they just opened a new card," says April Duncan, Equifax's director for consumer risk product manager. The score also measures whether consumers may still be interested in another card or a new account.

Issuers may set their own cut-off scores to identify which consumers to target. The scoring ranges from one to 990, Duncan says.

Financial institutions also may use the scoring model to cross-sell, such as to evaluate the likelihood existing customers, such as those with mortgages, would be open to a new-card offer, Duncan says.

Though TIP is not a risk-assessment score, it can be used with a risk-management tool, Duncan says. Users of Equifax's risk-scoring services would likely get favorable pricing, and pricing may also vary based on volume, she says.

Equifax is doing some "large tests" with some issuers. As part of that project, issuers assess a score based on earlier marketing campaigns to narrow the scope of later initiatives, Duncan says.

"That's the quickest way to understand how it works," she says. "You get results faster that way."

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